When deciding multiple projects, how will this project improve a business supply chain?
Project 1
Outsourse the machining and assmbly of parts to regional machine shops. Countinue in-house assembly lines for final assembly.
This will potentially reduce the labor force by one third (about 100 people) and will potentially result in the sale or disposition of approximately $3 million work of machinery. It is possible that the company contracted for outsoucring will purchase the machines, but there may be a book loss on the sale. there may be enough room freed up in the plant to move all of the remaining operations into one location. Outsourcing the manufacturing of these parts will regire enhanced communication withsupplies and customers. Inventory management is especially concernted about confrtolling the quality of the outsourced parts.